Financial default is the failure of an individual and his lack of success in managing his financial affairs in the correct way; this may be caused by a series of financial mistakes such as excessive borrowing or lack of skill in financial planning in dividing the monthly salary or dealing with financial products, which costs him a lot of fees and loses his ability to fulfill Financial obligations within the predefined time frame.

6 ways to address financial default
Stop borrowing
A decision must be taken to immediately stop borrowing and firmly resist the desire to do so. Debt repayment through borrowing will never solve the problem, it may even aggravate it and the borrower will incur more costs. So instead of resorting to debt settlement by borrowing, other ways of solving this problem should be sought.

financial planning
Financial planning is one of the most important factors for the stability of the financial life of individuals. Financial planning is not limited to developing a plan to manage financial matters in the short term only, but extends to an advanced stage of life. Therefore, setting a monthly budget to control spending, determining the amount of monthly savings, getting rid of debts, choosing an appropriate insurance program, and setting up a retirement plan as a whole should be part of any financial plan, and by this it can be guaranteed not to fall into financial troubles or at least address them if they Occurred.
[4 steps to help you prioritize debt repayment]

Arrange debts and installments
Payment priorities must be determined by preparing a list of debts and due installments and arranging them according to the interest rate and cost, and then repayment starting from loans with a high cost and so on until the last installment is paid, this helps to reduce the total cost of debt. Attention must also be paid to the debts that must be paid on time in order not to negatively affect the credit report, such as the obligation to pay the minimum credit card.

Organizing expenses
The monthly budget is one of the successful means of arranging and tracking expenses, through which all aspects of spending are identified and divided into several items in order to facilitate their management, and then focus on basic expenses and stay away from purchasing what is not necessary, so that a portion of the money can be used later in Pay off some of the accumulated debt, and then get rid of debt faster.

Find a new source of income
When faced with financial stumbling, one should not give up and tolerate a solution to the problem, because its consequences will be disastrous. We must search for solutions to face this crisis, among which is the search for another source of income without compromising the current job, whether through obtaining additional work, or working from home, as many businesses can be accomplished via the Internet, and thus the individual may obtain an income that exceeds the size of The obligations, then you can take advantage of this increase in debt repayment.

Create savings plans
Learning the culture of saving is one of the important factors that help in achieving financial balance. Saving is a way to achieve future goals or face emergency financial situations. Money saved can be used to pay debts or address emergency financial crises. Therefore, savings must remain part of any financial plan. If the monthly income is fixed, then 10% of the salary can be saved.

There are many reasons that ultimately lead to financial failure problems, including insufficient income to cover all necessary requirements and luxuries, and then resorting to borrowing to cover these expenses, or exposure to sudden financial crises, or exposure to a significant loss in a project, so it must be Take proactive steps to control the situation. Realizing the importance of financial planning, learning a savings culture and not over borrowing, the individual avoids falling into trouble.

Source: SAMA website

In April 2018, the Saudi Arabian Monetary Agency issued collection controls and procedures for individual customers, and these regulations set out the mechanism that financing agencies (banks and financing companies) must follow when communicating with individual customers and their guarantors with a view to collection in a way that guarantees the rights of all parties.

According to these controls, customers can, when their financial circumstances change, benefit from rescheduling the debt, and funding agencies are obligated - based on the customer’s request - to reschedule the debt in the event that the customer’s financial position is proven (compulsory) without giving new financing and without any additional fees and without any change At term cost. Funding parties are also obligated to reschedule the debt - based on the request of the client - in the event that the circumstances of the client are changed (optional) with the possibility of changing the cost of the term and without any additional fees. In these two cases, the financing contracts granted with the original guarantee are excluded.

In the context of the technical and digital transformation processes taking place in the Kingdom of Saudi Arabia, in an effort to keep abreast of the strategic plan towards the transition to e-government transactions, the Saudi Postal Corporation has created a "national address" to cover all regions of the Kingdom from the lowest to the maximum and develop it according to studied standard and technical specifications.

It has become obligatory for all individuals and establishments within the Kingdom to register in the national address, in implementation of Cabinet Resolution No. 252 issued on 7/24/1437 AH, where recently the registration service was available electronically in the national address. Through this article, we review the importance and mechanism of registration in the national address.

The importance of registration in the national address
Registration in the national address helps to complete many transactions with various governmental and commercial bodies or to benefit from public services and facilities within the Kingdom. Below are the most important advantages that accrue to the customer thanks to registration in the national address.

What are the services of the Saudi payment network “Mada”?

The national address is a mandatory requirement for completing banking transactions.
Take advantage of delivery and receipt services for vehicles insurance policy.
Ease of delivery of local and international purchases to the main address as well as the ability to deliver postal and parcel items to your address.
Ease of communicating in-kind needs to the address of the social security beneficiaries.
Make faster use of public services and facilities such as emergency services (ambulance and civil defense), health services, water and electricity services, communications services, and municipality, educational services for students.
Take advantage of the Absher services to receive documents, such as: passport, vehicle license, expatriate residence.

10 steps to register individuals for a national address via the website
1-Visit the page for registering a national address on this link
2-Then, clicking on the icon for registering individuals for citizens and residents
3-Then click on the new registration icon for citizens and residents
4-See the terms and conditions and then agree to them and then go to the individuals registration icon.
5-Enter location information, such as selecting a region, city, and neighborhood, and type the four-digit building number.
6-Verify that the site information is correct.
7-Enter personal information such as national identity and nationality, name, mobile and email.
8-Entering home information such as type of housing, ownership of housing, unit number, etc.
9-Enter the verification code sent to the registered mobile and press the Next icon
10-Review the data entered and then press record

Components of the national address
The national address consists of six main parts, as follows:

1-Building Number: A four-digit number that represents the number of a residential or commercial building inside the postal code.
2-Street name: The street on which the main entrance to the building or shop is located.
3-Neighborhood: The name of the neighborhood in which the building is located.
4-City: The name of the city in which the address is located.
5-Postal code: A five-digit postal code covering the specified area.
6-Supplemental number: A number consisting of four and similar to the building number.

Financing is a credit means that enables the customer to borrow a certain amount of money in order to achieve his financial goals, and then he is obliged to pay the amount of the financing amount plus the costs related to it on the number of periodic installments for a specified period of time, according to the agreed financing contract. The customer may falter in paying the installments as a result of a sudden change in his financial position or mismanagement of the utilization of the financing and the failure to allocate a portion of the income to pay the installments.

When does a person get stuck?
A person becomes falter if he loses his ability to abide by his financial affairs due to the licensed financing bodies who in turn update the credit report of their clients to the licensed credit information companies in the Kingdom, such as the Saudi Credit Information Company “SIMAH”. This report contains information and data related to credit products obtained by the customer, including credit products that have been defaulted for 5 years.

Penalty for defaulting on loans
The default penalty for loan repayment varies according to the client’s conditions as well as according to the terms and conditions mentioned in the terms of the financing contract, among which:

Difficulty obtaining other financing in the near future.
Freezing bank accounts and reserving customer balances in accordance with the decisions of the concerned authorities in this regard.
The property may be seized if the financing is subject to a guarantee in accordance with the applicable laws and regulations.
Legal accountability and prosecution by creditors.

4 steps to help you avoid defaulting 
*Limiting borrowing to necessary and important matters and not borrowing more than needed.
*Organizing financial matters and ensuring that the monthly income is sufficient to cover the monthly expenses in addition to loan installments.
*Ensure that there is sufficient balance in the account before the installments are due.
*Immediately notify the bank in the event of changing financial conditions, such as changing salary, employment, or any developments that affect the fulfillment of the financial obligations owed.

[6 things that help you pay off debts]
The role of the Saudi Arabian Monetary Agency
The Corporation stressed the need for the funding agencies to take into account the troubled client’s conditions when any judicial decision is issued in their favor in the event that the customer provides the necessary guarantees. These entities are obligated to provide the option to reschedule the debt with the possibility to change the cost of the term without any additional fees.

The Corporation also obligated banks and finance companies not to deduct any amount from the customer’s account without a judicial ruling to that effect, but the financing authorities have the right to take regular measures against defaulting clients, including resorting to the competent judicial authorities, according to the decisions issued by the Saudi Arabian Monetary Agency , Provided that the clients are notified before taking any action against the customer in case he fails to pay for more than three consecutive months or five separate months during the financing period, provided that the last attempt to contact the customer through the national address.

Source: SAMA website

If you’re in the market for a new car, don’t forget to put as much time into getting your car finance right as you do into getting the right wheels. In no particular order, these are some common mistakes to avoid...

1- Not working out your budget

Lenders have responsibilities to ensure you can reasonably afford to repay any proposed loan repayments, so having a realistic idea of your affordability is a good start.

Not only will it help you feel confident you can afford to repay your car loan – it will also give you a ballpark figure on what type of car you can be looking at. When working out your budget, don’t forget to factor in all your regular outgoings – even the gym membership.

2- Not knowing your credit score

Besides your affordability, your credit score is another important thing to consider when applying for a loan. It can be the deciding factor in whether your loan is approved or declined; and at the very least, it will influence how much you can borrow, and on what terms.

Did you know that it’s not just defaults or collections that will affect your credit score? Even paying your phone or power bill late, or missing a credit card payment, can impact on what your credit score is.

When applying for finance, the lender will look at your credit history to assess the likelihood of you repaying your loan on time. So consider checking it first (it’s free), and then take any necessary steps to improving it.

3- Not getting your finance sorted in advance

Getting approval before you start looking for a new car is all about knowing how much you can borrow.

In addition, having a ‘pre-approved’ loan puts you in a similar position to a cash buyer – which may give you some negotiation ability. Even better, it allows you to check out your new vehicle options at multiple car dealers, rather than having to find something you like at a car dealer where your finance is approved.

4- Not understanding the loan structure

In the excitement of getting a new car, it might be easy to skip over the fine points of the loan agreement. But it’s really important that you understand exactly what you are signing up for.

Even if you know that the payments are manageable within your budget, take some time to see what interest rate you are being charged, what fees apply and what your total repayments will end up costing. Plus, if you want to pay your loan back more quickly, you’ll want to make sure that there are no penalties that apply to early repayment.

Tayseer Finance can help you get the loan and loan structure that’s just right for you and your budget. Talk to us, and we’ll see if we can get you a pre-approval to go shopping for the next car of your dreams.

Buying a car is an exciting time. You’ve chosen the model you want, the year of manufacture, and all the added specs…and then it comes to finding the right loan to pay for it.

For lots of people, a car loan is their first real brush with the world of finance. Here are six things to make sure you understand before you sign on that dotted line.

1. The interest rate you’re paying

Finding the right interest rate is crucial to making sure that your car loan fits within your budget, both in the short and the long term.

As a starting point, research what the lender is offering and compare it with what else is available on the market. And in the meantime, make sure your finances are car loan-ready by checking your credit score.

Generally speaking, the higher your credit score is, the better your chances are to secure a good interest rate. If you find there is room for improvement, it might be a good idea to focus on boosting your credit score before shopping for your next set of wheels.

2. Are there any other costs involved?

The interest rate isn’t the only cost you need to factor in, as there may be other fees and charges associated with the loan.

These usually include a loan establishment fee, and either mandatory or optional insurances and warranties. Plus, there can be break fees (for paying off the loan early) and fees for missing payments.

That’s why it’s important to read the contract thoroughly and ask the lender what all the fees and charges would be over the full repayment period, in a single (total) dollar amount. This will help you budget and know where you stand.

3. The term

How long are you set to be paying off the loan? Usually, the shorter the loan term, the less you’ll pay overall.

Sometimes, it can be tempting to extend the term of your loan and spread smaller payments over a longer period of time. But keep in mind that the longer the term you choose, the higher the overall interest costs you’ll be paying over time.

Understand what you’re committing to and what that means. The law requires that any lender explains the terms of the contract before you sign up for a loan. They are required to give you a disclosure statement with the total cost of the loan, repayments, how much interest is charged and other fees that might be applied.

In response to the Coronavirus (COVID-19) pandemic, Saudi governments have introduced restrictions to help slow the spread of the virus. These restrictions have many of us practicing social distancing, staying home, and driving a lot less.

Cars, trucks, and SUV’s that we normally see on our roads, are now sitting idle in carports and garages. But during this time, it is important to remember that a lack of vehicle use can cause problems.

Here are some tips to care for your vehicle and avoid potential maintenance issues.

Charge the battery

Many vehicles have multiple computers that are always on and monitoring car systems. When a vehicle is idle, the discharge is less, but over time will cause the battery to go flat.

Using your car for essential trips such as food shopping can help maintain good engine performance. However, if you’re not going out, you can avoid flattening your battery by simply turning the engine on and letting it run for 5 to 10 minutes. Be sure to run the vehicle in a well-ventilated space to avoid fume inhalation.

Pump the breaks

When you’re not driving your car, rust can form on the brake rotors especially if your vehicle is parked outside. This can lead to uneven breaking, brake pulsation, and noise.

By taking your vehicle for a quick trip and carefully pumping your brakes a few times, you can minimise and even remove rust build up. If your car has been sitting idle for a while, it may be difficult to release the handbrake, but just like your regular brakes, frequent use will keep it in good operating condition.

Check the tyre pressure

Tyres naturally lose air, and cars that are stationary for long periods of time are at risk of tyres going flat. Driving on a flat tyre may lead to wheel and vehicle damage, resulting in poor handling and control. A short drive will assist in avoiding tyre flat spots.

It’s also a good idea to frequently check the tyre pressure and top it up to the manufacturer’s recommendation.

Service your car

Staying home and driving less does not mean you should delay a car service. A car service can also be scheduled by time as well as distance. Even though you may be travelling less, the service time clock is still ticking over.

Service centres are still open for business and are following rigorous hygiene procedures, and social distancing measures.

Clean and disinfect

This includes regularly wiping down all commonly touched surfaces such as the steering wheel, door handles, gear stick, window opening mechanisms and indicators. Don’t forget to leave the windows down or doors open to air out the cabin once you’re finished.

If you’re parked outside, you can avoid paint damage by frequently washing your vehicle to remove bird droppings, tree sap and debris.

By maintaining your vehicle now, you’ll be ready to go when we’re able to get back on the roads and driving freely again. The safety of our customers and drivers is important, and we ask that you reach out to us if your vehicle needs any urgent maintenance and repairs.

Reducing costs has always been one of the most effective paths to profitability for any business large or small. If you run a business and cutting costs isn't one of your personal mantras, then it really should be. Fleet costs can be one of the biggest expenses in a business, especially one that's constantly on the road, so reducing them is absolutely vital. Here are three tips to reducing your fleet costs over the long run.

1. Manage your fleet size

Selecting the optimal number of vehicles for your business is essential. Too many and you simply have capital tied up in non-productive resources, too few and you're potentially missing out on business because you don't have the vehicles for the job.

But size isn't the only consideration – the age of your fleet is important, too. While it's true that the older vehicles in your fleet may not be costing you much in depreciation, the cost of maintaining them can be very high indeed. And of course with each passing year they're losing their resale value. New vehicles are safer, more reliable and probably more economical. Finding that "sweet spot" when it's time to replace your vehicles is vital.

2. Consider your finances

If it's time to replace some of those older vehicles then it's important that you consider your financial options, because outright purchases may not be your best choice. By leasing those vehicles instead you won't have to stump up all that cash, leaving it available for more productive uses. Consider an operating lease, finance lease, hire purchase, or secured loan (chattel mortgage) instead.

3. Develop effective fleet policy

If managing your fleet has been a little ad-hoc until now, then it's time you added a bit of rigour to the process. Here are some things a fleet manager really needs to consider:

Vehicle insurance: Do you know what is vehicle insurance and its importance?

The great increase in the number of vehicles in our country posed problems on many levels. This increase led to congestion of roads, this increase also led to a noticeable and measurable increase in traffic accidents , and in a way that constituted a danger to societies in terms of loss of life and injuries, and in terms of material losses resulting from treatment expenses in the event of injuries, compensation for deaths and disruption rates, etc. as well Losses in vehicles in terms of repairing them, but the issue of limiting traffic accidents is a topic that many articles touched upon, and there are many of them on this site, but in this article, I will talk about reducing material losses as much as possible and mitigating them, and what are the procedures for doing this, especially Some may matter to its core, in order to save and think that accidents do not affect it, and it is protected from them, and therefore there is no benefit from this procedure and expenses.

Definition of vehicle insurance

It is a written contract between the two parties, the first is called the insurer (usually the insurance company) and the second is the insured (the owner of the vehicle), and under this contract the insurer is obligated to make reparation for the damage and compensate the insured for the damages that happen to his vehicle according to what is covered by the contract, in exchange for financial installments paid by the insured It is according to what is agreed upon between the two parties (annually _ monthly _ semi-annually).

Vehicle insurance benefits: -

1. Feeling of protection : Vehicle insurance provides a feeling of protection from loss, so the insured has, upon his commitment to an insurance contract for his vehicle, feels that any damage he makes against others will be covered and protected according to this contract, and in this way he feels safe and the feeling of anxiety disappears, a leadership in general needs To comfort and tranquility. This does not in any way mean negligence and causing accidents without need, as there are authorities that, whether by the police or insurance companies, will investigate the cause of the accident, and if it is found that it is fabricated, there is no compensation for the accident, but there is a penalty for the culprit of the accident.

2. Protection for society : This protection is divided into two parts:

A. Physical protection : Insurance protects society from its financial losses as a result of traffic accidents, it is known that insurance companies reinsure accidents with companies A major international that works in this field, and receives compensation for the accidents it insures.

B. Social Protection: Protection of society from disputes between its members, so if there is no vehicle insurance for the many disputes either in the courts, or either For disputes to turn into quarrels, and the use of force to restore rights, with insurance on the vehicle, individuals will shorten these disputes between them and go to insurance companies with their claims, which may respond to them, and it may be necessary to go to the courts, but in general, insurance companies shorten many disputes and discounts and end Claims amicably in its offices.

Types of vehicle insurance:

Vehicle insurance is divided into two types, and we will list them, the pros and cons of each type:

Third Party insurance:

This insurance includes reparation for damage and compensation for other vehicles and their passengers if the insured is the party responsible for the accident And this is proven, and it does not include the insured vehicle or its owner and passengers, and this type of insurance is also called (compulsory insurance), and the designation is due to the fact that the law requires the vehicle owner to insure his vehicle in this type of insurance as a compulsion, and otherwise the punishment is due on the vehicle owner, which may You reach confinement in some laws.

Pros of third-party insurance:

1. Compensation is provided for accidents caused by the insured (unintended accidents) to others, and therefore he protects him from paying amounts that may be high sometimes, and relatively speaking, she feels the driver of the vehicle is safe from the risks of accidents.

2.  Its premiums are relatively simple and not high, and it is not considered one of the amounts that burden the vehicle owner with regard to the protection it provides and the risks that it covers.

3. Its installments are fixed and do not change with the value of the vehicle.

Cons of third-party insurance:

The disadvantages of this type of insurance can be limited to the limited cover and protection it provides, it is limited to the vehicle of others, and therefore any damages and faults that occur to the vehicle of the owner or its driver are not covered by this type of insurance if it was the one who caused the accident, and he must bear the costs of these breakdowns and damages.

Comprehensive insurance: ​​​​​​​

It is optional for the vehicle; in which case the vehicle owner chooses to cover his vehicle with full protection. Under this comprehensive contract, protection covers both his vehicle and other vehicles, and their passengers.

Comprehensive insurance pros:

1. Insurance that provides high protection, and the insured feels protection for his vehicle, even if he causes the accident, and thus may avoid paying large amounts of money to fix it.

2. Insurance for many types of risks, as it is not limited to vehicle accidents. Comprehensive insurance covers the risks of theft, fire, and others.

Comprehensive insurance cons:

1. Premiums are high, and not all vehicle owners can pay them, or at least they are comfortable, especially if we know that many of those who buy modern cars are the ones who pay the price through bank financing and in the form of monthly installments

 2. It does not cover all cars, except modern ones, depending on the age of each vehicle, the old vehicle is assumed to be fast-damaged and causes more accidents than its modern counterpart

 3. The field of referring a dispute to the courts is much due to the high value of the claims, and therefore the insured may have to apply to the courts against insurance companies

The challenges facing companies and the financial managers who help manage them in unstable economic times are as great as ever. Improving the bottom line while simplifying accounting processes and procedures is vital to driving business forward and satisfying your shareholders, but this is easier said than always.